CVS Health Corp (CVS)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 13,807,000 | 7,899,000 | 12,935,000 | 12,655,000 | 12,035,000 |
| Long-term debt | US$ in thousands | — | — | — | — | 64,699,000 |
| Total stockholders’ equity | US$ in thousands | 76,461,000 | 71,469,000 | 75,075,000 | 69,389,000 | 63,864,000 |
| Return on total capital | 18.06% | 11.05% | 17.23% | 18.24% | 9.36% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $13,807,000K ÷ ($—K + $76,461,000K)
= 18.06%
CVS Health Corp's return on total capital has exhibited fluctuating performance over the five-year period analysed. The return on total capital decreased from 2018 to 2019 before showing an upward trend from 2019 to 2022. In 2023, there was a slight decline in the return on total capital compared to the previous year but remained at a respectable 10.57%. Overall, CVS Health Corp has generally maintained a stable return on total capital above 10% throughout the period, indicating the company's ability to effectively utilize its total capital to generate returns for its stakeholders.
Peer comparison
Dec 31, 2023